Israel Wants American Banks to Open Branches in Israel

Israel seeks American can banks to operate in Israel, the Voice of Israel reported yesterday. According to the report, Israel has already had positive indications that at least one unnamed U.S. bank — reportedly among the top 10 — might open branches in Israel, thus giving a boost to the troubled Israeli banking system, reestablishing its shaky credibility in the world financial market.

The final decision to go to the American banking market was reportedly taken recently in top level consultations, which included Finance Minister Yitzhak Modai, Minister of Economic Planning Gad Yaacobi, and Bank of Israel Governor Dr. Moshe Mandelbaum. The idea is not new. It was raised several times in the past, but now, Israel decided to go ahead with implementing it.